Profitable Production Growth Creating Long-Term Value FEBRUARY | 2026 Birchcliff's 100% owned and operated Pouce Coupe Gas Plant Corporate Presentation This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. For further information regarding the forward-looking statements and forward-looking information contained herein, see "Advisories – Forward-Looking Statements". With respect to the disclosure of Birchcliff's production cont ...

Core Viewpoint - Saturn Oil & Gas Inc. announces its 2026 capital budget and production guidance, focusing on prudent capital allocation and flexibility in response to commodity price fluctuations [1][2]. Capital Budget and Production Guidance - The company plans a development capital budget of CAD 180 to 190 million, targeting average production of 39,000 to 41,000 boe/d, with approximately 81% weighted to oil and liquids [2][8]. - The budget is designed to prioritize high-return drilling targets and optimize free funds flow generation, allowing for quick adjustments based on market conditions [2][3]. Financial Expectations - Adjusted Funds Flow (AFF) is projected to be between CAD 325 million and 375 million, with a per-share estimate of CAD 1.75 to 2.00 [8]. - Free Funds Flow is expected to range from CAD 120 million to 170 million, translating to a yield of 25% to 35% [8][9]. Production Strategy - The 2026 budget is expected to be weighted towards the second half of the year, with over 40% of capital deployed in Q3 and nearly 30% in Q4, reflecting seasonal impacts [5][6]. - The company plans to drill 105 wells, focusing on high-return locations in Southeast Saskatchewan and Central Alberta [10][19]. Operational Efficiency - The company aims to reduce net operating expenses through the integration of recently acquired assets and ongoing efficiency improvements [6][19]. - Minimal infrastructure spending is required due to the mid-life cycle asset base, which has lower decline rates [3][19]. Sensitivity to Commodity Prices - Each additional USD 5 per barrel increase in WTI oil prices is estimated to add approximately CAD 50 million to AFF [9][10]. - The disciplined capital budget retains flexibility to target quick payback opportunities in response to price changes [9][10].

Core Insights - Bonterra Energy Corp. announced positive results from its latest Charlie Lake wells, with a combined average 30-day peak rate of 2,650 BOE per day, including 1,100 barrels per day of light crude oil [2][8] - The company has entered into a definitive agreement to acquire an adjacent asset in the Greater Bonanza Area for $15.7 million, which is expected to enhance production and cash flow [4][10] - The preliminary budget for 2026 anticipates production growth of 8% year-over-year, with a capital expenditure range of $75 to $80 million [13][21] Charlie Lake Well Results - Completion operations on two new wells were finished in Q4 2025, achieving peak rates of approximately 1,325 BOE per day per well [8] - The new wells utilized three-mile laterals and increased fracture stimulation intensity compared to previous wells [2] - An additional well is planned for completion in Q1 2026 [2] Strategic Acquisition - The acquisition will increase Bonterra's land holdings in the Greater Bonanza Area by 36% and add approximately 760 BOE per day of production [4][9] - The deal includes 21 top-tier drilling locations and enhances the company's existing infrastructure [9][10] - The acquisition is expected to close before December 31, 2025, and will be funded through the company's revolving credit facility [10] 2026 Preliminary Budget Guidance - The budget aims for an average production of 16,200 to 16,400 BOE per day, with a focus on Charlie Lake and Montney assets [13][21] - Expected funds flow is projected between $105 million to $110 million, with free funds flow of approximately $21 million [14][21] - The budget allocates approximately 60% towards the Charlie Lake core area, 10% towards Montney, and 25% towards Cardium [22] Financial Metrics and Projections - The company anticipates a free funds flow yield of approximately 14% based on a WTI price of $60 per barrel [14][21] - The net debt to last twelve months' EBITDA ratio is expected to be around 1.3x by the end of 2026 [14][23] - Hedges are in place for approximately 31% of expected crude oil and 21% of natural gas production to mitigate market volatility [17]

Core Insights - Saturn Oil & Gas Inc. reported a significant net debt reduction of over $119 million in Q2 2025, achieving a total net debt of $694.8 million, which reflects a 15% decrease compared to Q1 2025 [2][5][6] - The company achieved record free funds flow of $93 million, supporting ongoing financial flexibility and shareholder returns [2][5][9] - Adjusted funds flow for the quarter was $109 million, representing a 23% increase compared to Q2 2024, with a per-share value of $0.56 [5][9][12] Financial Highlights - Petroleum and natural gas sales for Q2 2025 were $236.7 million, compared to $278.1 million in Q1 2025 and $208.9 million in Q2 2024 [8][37] - Cash flow from operating activities was $89.9 million, down from $165.4 million in Q1 2025 but up from $50.5 million in Q2 2024 [8][37] - Adjusted EBITDA totaled $131.7 million, a 24% increase over Q2 2024, resulting in a net debt to annualized quarterly adjusted EBITDA ratio of 1.3x [9][37] Operational Highlights - Average production for Q2 2025 was 40,417 boe/d, exceeding the high end of guidance and reflecting continued asset outperformance [5][15] - Operating costs were reported at $18.28 per boe, which was below the low end of guidance [5][10] - The company successfully repurchased $19.8 million of its Senior Notes at a discount, effectively reducing total liabilities and future interest obligations [6][11] Strategic Initiatives - The Saskatchewan government's elimination of the carbon tax is expected to yield annual operating cost savings of up to $20 million, which can be reinvested into the business [12] - The company has initiated a substantial issuer bid (SIB) to repurchase shares, with a total return to shareholders of approximately $24 million since August 2024 [9][13] - Saturn plans to continue its capital expenditures in Q3 2025, estimated between $80 million and $90 million, focusing on high-return drilling programs and production optimization initiatives [17][18]